NUAIMI HOLDINGS LIMITED

Executive Summary

NUAIMI HOLDINGS LIMITED shows growth in its investment property portfolio funded by increased borrowings but remains in a leveraged position with negative equity and constrained liquidity. Cash reserves have sharply declined, tightening working capital and raising concerns about short-term debt servicing. Credit approval is conditional, with close monitoring required on cash flow, rental income, and refinancing risks to ensure ongoing financial stability.

NUAIMI HOLDINGS LIMITED - Analysis Report

Company Number: 12631791

Analysis Date: 2025-07-29 14:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NUAIMI HOLDINGS LIMITED is a relatively young private limited company engaged in real estate investment and operation. The company’s net assets remain negative (£-4,851 as at 31 May 2024), reflecting accumulated losses. However, the company has significantly increased its investment property base during the year (£213,832 vs. £100,286 prior year), funded by increased borrowings. This indicates growth and potential value creation, but also increased leverage and risk. The current liabilities (£5,964) are low relative to total borrowings (£213,576), suggesting a longer-term debt structure but limited near-term liquidity. Approval is conditional on monitoring cash flow improvements and servicing capability given modest working capital and negative equity.

2. Financial Strength:

• The company’s balance sheet shows a substantial increase in fixed assets (investment property) due to additions of £113,546 during the year.
• There is a marked rise in total creditors due after one year (£213,576 in 2024 vs. £150,281 in 2023), showing increased long-term debt financing.
• Net current assets have swung from a positive £44,922 in 2023 to a negative £5,107 in 2024, indicating a tightening short-term liquidity position.
• Shareholders’ funds remain negative, indicating that the company has yet to generate retained earnings to offset losses or fund growth internally.
• The balance sheet reflects a leveraged position typical for property investment companies but requires close scrutiny of debt servicing ability.

3. Cash Flow Assessment:

• Cash at bank has dropped dramatically from £44,472 in 2023 to £222 in 2024, signaling a significant cash outflow, likely related to property acquisitions and debt repayment schedules.
• Debtors remain minimal (£635), indicating limited receivables risk.
• Current liabilities are manageable but current assets are insufficient to cover them, suggesting working capital constraints.
• The company’s ability to meet short-term obligations depends heavily on rental income receipt and timely refinancing or repayment of long-term debt.
• No employees are reported, so no payroll pressure exists, but the company must ensure operational costs are covered.

4. Monitoring Points:

• Track rental income stability and growth to ensure cash inflows can cover debt service and operating costs.
• Monitor loan covenant compliance and refinancing risks given increased long-term borrowings.
• Watch working capital trends closely; negative net current assets may pressure liquidity if prolonged.
• Assess any changes in property valuations as these affect asset backing and borrowing capacity.
• Verify director’s plans for turning around negative equity and improving profitability.